Maloof: Sacramento's plea to Anaheim 'below the belt'

Sacramento Kings owners George, Gavin and Joe Maloof, left to right, cheer on their team last month against the Clippers. Joe Maloof reacted angrily to a letter sent by a Sacramento city official asking Anaheim to 'cease' negotiations with the Maloofs. STEVE YEATER, ASSOCIATED PRESS

NBA Sacramento Kings co-owner Joe Maloof, in his first public comments related to ongoing negotiations to move the Kings to Anaheim, reacted angrily Monday night after learning a Sacramento city official had sent a letter to an Anaheim city official advising Anaheim officials to "cease negotiating with the Kings."

"It's not for the mayor or anybody (in the City of Sacramento) to interfere with our business. That's what I think they're doing, and it's not right," Maloof told The Orange County Register. "We would appreciate that they not interfere with our business."

John Dangberg, Sacramento's assistant city manager, sent a letter earlier Monday to Anaheim City Manager Thomas Wood, expressing concern that actions taken by the Anaheim City Council tonight might cause "irreparable harm to the City of Sacramento."

In the letter (click here to see a copy of it), Dangberg also said the Maloofs had not provided "assurance" they would pay off a $73.8 million loan from the City of Sacramento, as contractually required, if the team decided to relocate.

Because of that perceived uncertainty, Dangberg "respectfully" requested in the letter that Anaheim city officials end negotiations related to the Kings' relocation and "not authorize" the proposed $75 million in lease-revenue bonds to help the Kings move and to upgrade Honda Center. That agenda item is expected to be voted on in Tuesday night's City Council meeting.

"That letter is completely wrong, and it was uncalled for – below the belt – and it's a shame it had to come out of his office," Maloof said. "We tried to be classy and not get in arguments in the media, but I (have to) make this comment.

"We will continue on with our business and do what is best for the viability of the franchise – what's best for the franchise and what's best for the league."

What upset Maloof the most was the inference in the letter that the family, which has owned the Kings since 1999, might not repay the loan immediately if the team decides to relocate. If the team moves before 2027, the Maloofs are contractually obligated to pay the outstanding amount, which the letter said is approximately $77 million.

It is a 1997 loan issued by the City of Sacramento to the previous Kings owner and inherited by the Maloofs.

"We've always satisfied our obligations to the City of Sacramento," Maloof said. "We're honest business people and we have never missed a payment. In fact, we're way ahead of schedule. A couple of years ago, we paid somewhere between $9 million and $11 million ahead because we wanted to lower the debt. ...

"We've always paid our financial obligations in the past, we're going to do it in the present and we're going to do it in the future. They have nothing to worry about. They will be paid in full, whatever it takes."

Maloof said he believes the letter, on the eve of the important City Council meeting, was an attempt to "block" the Kings' proposed move.

"You better be careful; don't mess around and interfere with our business," he said. "That's all we ask. Whatever (remedies) we have, we're going to use. We're dead-serious about this, because it's an awful letter. It should never have been sent, (because) it gives the wrong impression."

Maloof wondered why he would have to inform anyone now that loan would be paid, because the relocation process is ongoing and a formal application has not yet been filed.

"We're still the Sacramento Kings – nothing new there," he said.

The proposed lease-revenue bonds Anaheim city council members will vote on will go to Anaheim Arena Management, the Henry Samueli-owned company that operates Honda Center for the City of Anaheim.

Dangberg said in the letter if "Anaheim insists on continuing negotiations," it should make the bonds conditional on the Kings honoring their financial obligations. He also alluded to another letter that was being sent "expressing the City of Sacramento's concerns" about a recent environmental report that it termed "woefully inadequate."

In closing the letter, Dangberg alluded to items on the Anaheim City Council agenda tonight that could have a "blighting" impact on Sacramento, with or without repayment of the loan by the Maloofs, perhaps implying a lawsuit could be forthcoming.

User Agreement

Keep it civil and stay on topic. No profanity, vulgarity, racial
slurs or personal attacks. People who harass others or joke about
tragedies will be blocked. By posting your comment, you agree to
allow Orange County Register Communications, Inc. the right to
republish your name and comment in additional Register publications
without any notification or payment.